CHAPTER – II

INCIDENCE AND LEVY OF TAX

3. Incidence of tax.

(1) Subject to the provisions of this Act, every dealer–

(a) who is an importer of goods; or

(b) who is a manufacturer of goods and whose annual turnover exceeds rupees two lacs; or

(c) whose annual turnover exceeds “rupees ten lacs”, shall be liable to pay tax under this Act.

(2) " Notwithstanding anything contained in sub–section (1) a dealer other than that enumerated in clause (a) or clause (b) of sub–section (1) or dealer or class of dealers as may be notified by the State government, who purchases goods from a registered dealer of the State and sells such goods within the State, may opt for payment of tax on his turnover excluding the turnover of the goods specified in Schedule I, at the rate as may be notified under sub–section (3) of section 4, subject to the condition that such annual turnover does not exceed rupees "seventy five lacs" in a year. "

(3) Notwithstanding anything contained in sub–sections (1) and (2) every casual trader shall be liable to pay tax under this Act.

(4) Notwithstanding anything contained in sub–sections (1) and (2) every person, other than a casual trader or a registered dealer, who carries on business temporarily for a period not exceeding one hundred twenty days in a year, shall be liable to pay tax under this Act in the manner as may be prescribed.

(5) A dealer registered under the Central Sales Tax Act, 1956 (Central Act No.74 of 1956) who is not liable to pay tax under sub–sections (1) to (4), shall nevertheless be liable to pay tax in accordance with the provisions of this Act.

(6) Notwithstanding anything contained in this Act, a dealer registered under this Act shall so long as his certificate of registration remains in force, be liable to pay tax, irrespective of his turnover.